Kyrgyzstan's Keremet Bank restricts use of Visa cards due to sanctions imposed on it

BISHKEK. Jan 21 (Interfax) - Keremet Bank in Kyrgyzstan, which has come under sanctions, has introduced restrictions on the use of Visa cards, the bank's press service said on Tuesday.

"Due to restrictions imposed by the Visa international payment system, cards issued by Keremet Bank can only be used on devices (POS terminals, payment terminals, ATMs) owned by OJSC Keremet Bank," the press service said.

All funds held on card accounts can be withdrawn at the cash desks of the bank's nearest branches or transferred via its mobile application to cards of the Elkart national payment system, or to settlement accounts.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) previously included Keremet Bank in its sanctions list. The Department of the Treasury said that the bank's officials have coordinated their actions with Russian officials and the sanctioned Promsvyazbank to implement a sanctions evasion scheme since at least the summer of 2024.

The U.S. sanctions against Keremet Bank have had no impact on the stability of the country's domestic foreign exchange market, the National Bank of Kyrgyzstan said. If necessary, the National Bank is prepared to deploy additional measures and tools to maintain the resilience and stability of the banking system and protect the interests of depositors and creditors.

Keremet Bank itself said it intends to appeal to OFAC to challenge the latter's statement alleging violations.